Prajna Capital - An Investment Guide

This article explains how capital gains tax can be saved by depositing the amount in specified bank accounts Capital gains tax is levied on sale or transfer of a house. The capital gains tax is computed on the indexed cost of the house purchased, which is deducted from the consideration received. The indexed cost is computed according to the indexation rates notified by the Income Tax Department for each year. You can reduce the capital gains tax payable by complying with the provisions specified under the Act. The benefit is available only to individuals and a Hindu Undivided Family ( HUF ). No other category of assessees are eligible for this concession. The house may be self-occupied or rented out. It must be held for a period of more than 36 months before the date of sale or transfer. The asset transferred should include a building, or land appurtenant to it and a house. The income of the house should be chargeable to tax under the head 'Income from House Property'...

This article explains how medical insurance is tax deductible under Section 80D of the IT Act With increasing medical costs, mediclaim policies are a good option to hedge medical costs. Mediclaim policies are offered by almost all insurance companies - both in the private sector and the public sector. These policies provide insurance cover for the treatment of most of the ailments and hospitalisation. In addition to the basic coverage, add-ons are available on payment of extra premium. You should go through the coverage and exclusions clauses carefully. In some cases, pre-existing ailments are also covered on payment of additional premium. The cover may be enhanced to ailments which are not normally covered also. Some insurance companies provide cover for day care and annual medical check-ups as well. Mediclaim insurance is a good investment avenue offering tax savings and medial cover. You can insure against medical expenses for yourself or for your dependents. Mediclaim cov...

Joint ownership is when two or more persons hold title to the same property. In case of coparcenary, the members have a common and an equal interest in the ancestral property. Any co-owner can transfer his share in the property to an outsider or another co-owner, and the transferee steps into the shoes of the co-owner. The transferee becomes the co-owner. A co-owner is entitled to three essentials of ownership - right to possession, right to use and right to dispose off the property. Therefore, if a co-owner is deprived of his property, he has a right to be put back in possession. Such a co-owner will have an interest in every portion of the property and has a right irrespective of his quantity of share, to be in possession jointly with others. This is also called joint-ownership. Co-ownership can be changed to sole ownership through partition. The term co-owner is wide enough to include all kinds of ownerships such as joint tenancy, tenancy in common, coparcenary, membership ...

LOOKING at ways and means to split your identity for the purpose of better accounting and tax-saving provisions? Well, you could take a cue from the times when people lived in joint families and shared joint incomes. The same concept can help you save on income tax if you open a Hindu Undivided Family ( HUF ) account. In fact, the account — coming under the provisions of the HUF Act — can help you enjoy driving your brother’s or father’s luxury car and yet save some tax by claiming depreciation on the same in your business. The only thing required is to know the details of this Act and its implications in saving tax. FLEXI-OPTIONS Unlike the name suggests, a HUF does not mean only a Hindu family but even Jains, Buddhist and Sikhs can form HUFs. Generally a HUF consists of at least two members, of which one must be a male, and are lineally ascended from common ancestors. But smaller partitioned families can also form HUF with only one male member. According to the Supreme Court (C.I.T. ...

Some conditions that enable you to claim a tax deduction on the expenses incurred towards the medical treatment of family members You can take a medical insurance plan for yourself, your spouse, parents or dependent children. Under Section 80D, you can claim a deduction up to Rs 15,000 for the premium paid. Mediclaim policies are offered by almost all insurance companies. Mediclaim policies provide insurance cover for the treatment of most ailments and hospitalisation. In addition to the basic cover, add-ons are available on payment of extra premium. You should go through the coverage and exclusion clauses carefully. In some cases, pre-existing ailments are also covered on payment of an additional premium. The cover may be enhanced to ailments which are not normally covered also. Some insurance companies provide cover for day-care and annual medical checkups as well. For senior citizens who are tax payers and 65 years of age or more, the limit now has been enhanced to Rs 20,000...

You can Widen income base & get tax relief LOOKING at ways and means to split your identity for the purpose of better accounting and tax-saving provisions? Well, you could take a cue from the times when people lived in joint families and shared joint incomes. The same concept can help you save on income tax if you open a Hindu Undivided Family ( HUF ) account. In fact, the account — coming under the provisions of the HUF Act — can help you enjoy driving your brother’s or father’s luxury car and yet save some tax by claiming depreciation on the same in your business. The only thing required is to know the details of this Act and its implications in saving tax. FLEXI-OPTIONS Unlike the name suggests, a HUF does not mean only a Hindu family but even Jains, Buddhist and Sikhs can form HUFs. Generally a HUF consists of at least two members, of which one must be a male, and are lineally ascended from common ancestors. But smaller partitioned families can also form HUF with only one mal...

Some deductions you are eligible for to help you arrive at the right taxable income while filing returns. This time you don’t need to attach any documents to the form. The last date for individuals to file returns is July 31 The time to file the income tax returns is here. July 31 is the last date to file the IT returns for individuals. The returns has to be filed for the previous year - April 2008 to March 2009. So, the transactions should have taken place during that period only. Any subsequent transactions will be taken into account during the next year - 2009-10. An assessee also needs to compute taxes properly and pay off any outstanding dues. This can be done before the date of filing of the returns. It is of utmost importance that one uses the correct form, as is applicable to him. In a radical change from the past, no document (including TDS certificate) should be attached to this form. The officials receiving the returns have been instructed to detach all documents enclosed wi...